AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2016 (9) TMI 547
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....e business of manufacturing of material handling equipment and generation of power, filed its return of income for A.Y. 2010-11 on 11.10.2010 declaring income of Rs. 20,47,91,860/-. The case was taken up for scrutiny and the assessment was completed under section 143(3) of the Income Tax Act, 1961 (in short 'the Act') vide order dated 07.12.2012, wherein the income of the assessee was determined at Rs. 22,30,84,630/- in view of the following additions/ disallowances: - (i) Disallowance under section 14A Rs. 2,39,342/- (ii) Addition on account of unaccounted interest income Rs. 13,631/- (iii) Income from House Property Rs. 13,00,681/- (iv) Disallowance of deduction under section 80IA Rs. 1,67,39,116/- 2.2 Aggriev....
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....reversed and that of the Assessing Officer (AO) be restored. 3.3. Per contra, the learned A.R. for the assessee contended that the impugned order of the learned CIT(A) holding that the assessee is eligible for deduction under section 80IA of the Act was in order. It is submitted that in holding so, the learned CIT(A) followed the decision of the Coordinate Bench of this Tribunal in the assessee's own case for A.Y. 2009-10 in ITA No. 2342/Mum/2012 dated 13.09.2012. The learned A.R. for the assessee contends that since the issue is squarely covered in favour of the assessee by the aforesaid decision of the Coordinate Bench (supra), Revenue's appeal is liable to be dismissed. 3.4.1 We have heard the rival contentions and perused and carefull....
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....lso perused the orders of the authorities below. We have also gone through the earlier orders of the Tribunal dated 6.2.2013, copy of which are placed at pages 28 to 31 of the paper book and the order dated 8.2.2013, copy of which is placed at pages 32 to 44 paper book (supra). We observe that the Tribunal has stated that the above issue is squarely covered in favour of the assessee by the decisions of the Hon'ble Madras High Court, wherein it has been held that the assessee company is eligible for deduction u/s 80-IA in respect of the income from Windmill installed by it and the unabsorbed depreciation set off in earlier years cannot be reduced from the profits for computing the deduction u/s 80IA of the Act. However, the Tribunal stated t....
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....sses have already been set off against the income of non-eligible unit in the earlier years and in case the losses were already set off then the same cannot be notionally carried forward for setting off against for computing the deduction under section 80IA of the Act. We hold and direct accordingly. Consequently, the grounds at S.No. 1 to 4 raised by Revenue are rejected. 4. In the result, Revenue's appeal for A.Y. 2010-11 is dismissed. 5. Assessee's CO No. 82/Mum/2016 for A.Y. 2010-11 5.1 In this CO the assessee has raised the following objections: - "I. DISALLOWANCE UNDER SECTION 14A OF THE ACT Rs. 2,39,3421-: 1.1 On the facts and in the circumstances of the case and in law, the learned Commissioner of Income-tax (Appeals) [CIT(A)....
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....he working of the expenditure incurred for earning the exempt income that investments in shares have been made partly from out of its own funds and internal accruals and partly from borrowings. In that view of the matter, the AO, following the decisions of the Hon'ble Bombay High Court in the case of Godrej and Boyce Mfg. Co. Ltd. (2010) 328 ITR 81 (Bom) and of the Special Bench of the ITAT, Mumbai in the case of Daga Capital Management (P) Ltd. (2009) 117 Income Tax Officer 169 (Mum) (SB) worked out the disallowance under section 14A r.w. Rule 8D at Rs. 5,71,091/- and proceeded to disallow an amount of Rs. 2,39,342/- (i.e. Rs. 5,71,091/- less Rs. 3,31,749/- disallowed by the assessee suo moto). 6.2 On appeal, the learned CIT(A) was of....
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....rm loan and related interest expenditure do not have any nexus, direct or indirect with the earning of exempt dividend income but pertain to business income which is taxable. We find that these factual submissions by the assessee though made before the learned CIT(A), as reflected at para 3.2 of his order, have not been examined or addressed by him in the impugned order. 6.5.2 In the above factual matrix placed before us we are of the view that the facts on record reveal that the interest expenditure of Rs. 39,20,797/- incurred towards term loans taken for purchase of Windmills by the assessee in the earlier years has no direct nexus with the earning of exempt income by the assessee and therefore is not to be considered while working out t....